Colm M. Hilliard
Question:508 Mr. Hilliard asked the Minister for Enterprise and Employment the reason for the allocation of £10 million under Subhead C2 of Vote 34 in the 1996 Estimates. [19321/96]
Written Answers. - 1996 Estimates.
The purpose of subhead C2 is to provide grants to projects setting up in the Shannon Free Zone, mainly in respect of plant and machinery, training of workers and rent reduction on factories provided by Shannon Development. The large increase in the provision under this subhead for 1996 in comparison to the outturn for 1995 relates to the requirements of one project in particular, viz. Shannon Aerospace.
Colm M. Hilliard
Question:509 Mr. Hilliard asked the Minister for Enterprise and Employment the measures for which small businesses can qualify under Subhead L3 of Vote 34 in the 1996 Estimates. [19322/96]
Subhead L3 of Vote 34 of the 1996 Estimates provides for expenditures under the small business operational programme which was approved by the European Commission on 26 July 1995 and launched in September 1995. The overall aim of this programme is to contribute to improving the operating environment for small business through the pursuit of five specific measures supported by standard technical assistance under measure six of the programme.
Measure one of the operational programme is a priority measure aimed at providing access to finance to small business and service firms. It responds to a need identified and given priority by the small business task force which reported in 1994. Through this measure, funding from the European Union, the Exchequer and participating banks is used to subsidise the interest on long-term loans to small business and services firms. The access to finance scheme, launched in September 1995 under the measure, provides £208 million in long-term loan finance at a subsidised rate of 6.5 per cent over seven years to small firms, i.e. those with less than 50 employees or with an annualturnover of less than £3 million. The scheme is delivered through almost 1,000 branches of Allied Irish Bank, Bank of Ireland, National Irish Bank and Ulster Bank and drawndown of funds can take place up to 31 December, 1996. The success of the scheme is evident from the interest shown by small business through applications to participate in it.
Measure two is designed to improve the accessibility of public markets to small business by addressing the problems experienced by small business on both the supply side and the demand side of public procurement. Small businesses will benefit from this measure through greater access to the target markets. Details of specific actions under measure two will be announced shortly.
Measure 3 seeks to improve the business organisation and strategic focus of services firms, particularly in higher technology sectors, and provides for a programme of actions for services firms which have growth/employment creation potential but do not currently qualify for assistance under Forbairt's international services programme. This measure, to be delivered by Forbairt, will assist services firms through a coordinated and linked series of actions, which will identify those service sectors with most potential for business and job growth and determine the dynamics that drive these high potential sectors; promote new start-ups and develop existing service businesses-assistance will be provided to companies to help bridge the gap which often occurs between the feasibility study phase and the implementation of a business project; introduce networks of business alliances and partners to Irish service firms with particular emphasis paid to companies regarded as having high potential for growth and support a number of strategic initiatives which are aimed at companies offering electronic information services targeted at SMEs.
Measure four reflects the difficulty experienced by small businesses in keeping fully abreast of developments in their business environment. The small business and services division of my Department, in close consultation with the small business sector, is in the process of drawing up a programme of practical research designed to facilitate the production of a series of manuals of best practice for small firms in a userfriendly and accessible format. The research work and preparation of these manuals will be put to tender in the coming weeks.
Measure five will support a number of pilot projects for small business designed to improve business know-how and the business environment. A number of projects have been proposed under this measure which will be assessed on their individual merits and successful proposals will come on stream over the coming months.
Colm M. Hilliard
Question:510 Mr. Hilliard asked the Minister for Enterprise and Employment the persons-groups who qualified for grants in 1995 under Subhead Y4 of Vote 34; and the type of projects involved. [19323/96]
This subhead relates to funding, on an ongoing basis, of elements of the Local Employment Service (LES) which are additional to those currently being provided by a range of agencies, partnerships and individual community groups at area level. The main additional feature of the service is the provision of a client-focused mediation and counselling service.
Funding is based on approval of an overall plan for each area and applies to the start-up and operational costs of services provision. Plans have been approved and budgets agreed in respect of seven partnership areas — Tallaght, Limerick, Finglas/Cabra, Dundalk, south west Kerry, northside and Ballymun.